Your Monday Morning Republican Juggernaut Update

Eat the poor edition.

Republican US Senate candidate Katherine Harris is calling for major changes to America’s tax system as part of her senate campaign, substituting a universal sales tax for the current income tax system.

The plan would impose a sales tax of at least 23 cents on every dollar spent on a majority of goods and services. In return, Harris would end the current system funded by income taxes. Harris would also like to eliminate income, inheritance and capital gain taxes.

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Critics are also skeptical of the plan. A 2004 study by the nonprofit Institute on Taxation and Economic Policy showed the national sales tax would raise taxes on the majority of Floridians by $4,000 a year. The top 5 percent of Florida wage earners would save $61,000.

“You could fill a barn with what we don’t know about this tax,” said Matt Gardner, state tax policy director for the Institute on Taxation and Economic Policy. “It sounds good, but this is an idea that just doesn’t stand up to scrutiny.”

One thought on “Your Monday Morning Republican Juggernaut Update

  1. Please Explain to me. I know that sales tax is regressive and dislike it for that reason alone. I see that the Harris plan, by coincidence will save money for those in the top income brackets.
    But if the National Sales tax is 23%, and the State and Local Sales taxes are (where I’m at) 8 %, wouldn’t a total sales tax of 31% tend to discourage people from spending money. Wouldn’t it put the taxes “in your face”? Wouldn’t a decrease in spending ruin the wrongly-called “economic miracle” of Bush?
    The only thing I can see in her favor is that Florida has a huge tourist industry. Therefore sales tax would tax the tourists and shift the burden away from the Floridians.

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